The Time For Tinkering has Passed

By Peter Moore

Under-investment in urban mass transport for more than three decades, lack of cooperation between public transport authorities, political timidity and sheer population growth, have coalesced to present cities with a huge challenge.

These will cause social, environmental and economic problems throughout metropolitan areas unless they are addressed now. This should be an issue for unions as their members are workers on public transport, users of public transport, road users generally and citizens of the cities that must deal with the mass congestion and pollution that is all to evident everyday.

Australia has the highest greenhouse gas emission levels per capita in the world and the third highest for transport. Federal tax reform (ie the GST) pushed fares up 10% whilst simultaneously dropping new car prices by 6%. These price effects, with business also being able to claim 7 cents per litre tax credit on petrol used for business purposes are regressive measures that send the wrong price signals. New Zealand and most European countries recognise the economic, social and environmental benefits of public transport and apply either a zero rate of GST or a reduced rate to public transport. Fringe Benefit tax inequity also favours car use. FBT applied to car use as part of salary packages in approximately 10% of the purchase price. FBT applying to public transport tickets is 95%.

Moore also argues that politicians consistently underestimate the level of public opinion in support of public transport. European and Australian studies back his claim that there should be less emphais on roads at the expense of public rtransport provision.

Governments cry poor about funding public transport so Moore suggests various ways that the desired funds could eb generated including parking levies, developer contributions, road pricing, land tax and payroll tax.

(Dissent; no. 9, Spring 2002)